9 Common Investing Mistakes (And How To Save More Money)
At some point in our lives, most people will make a regrettable mistake with their money. Smart investing requires knowledge and/or the help of a well-informed advisor, and even then, we can be steered in the wrong direction.
According to Ken Weber, one of the country’s leading mutual fund experts and principal of Weber Asset Management Inc., even the biggest investors make mistakes with money. With over 30 years of experience, Weber has virtually seen it all.
To gain the insight of an expert, we asked Weber to give us a rundown on the most commonly made investing mistakes and how to avoid them. Here’s what he said:
Assuming the person has at least five years until retirement, the dumbest things people do are:
1. They keep it all in a bank savings account.
2. They keep it all in a money market fund.
3. They put it all into Savings Bonds.
4. They put all or most of it in the stock of the company they work for.
5. They put all or most of it into just one or two stocks.
6. They buy an annuity because a salesman, um, I mean, “financial professional,” convinced them it was a smart investment.
7. They borrow money to invest for retirement.
8. They buy mutual funds with high fees.
9. Above all, the dumbest thing people do is not saving for retirement!
How To Save More Money
The best thing any young person can do is to keep track of all their expenses. And that’s not terribly difficult these days, especially since more and more young folks put almost every purchase on a credit or debit card. If every month they just sat down with the monthly statement and focused on how their money was spent, they can begin to sniff out areas where savings are possible. And the best advice I can give any young person is: save, save, and save some more!
Ken Weber is one of the premier mutual fund experts in the United States. With more than 30 years of experience in the investment industry, Weber’s investment advice has appeared in most major financial publications, including Barron’s, Money, The Wall Street Journal, Reuters, and The New York Times. Weber is the founding member of Fidelity Investments’ RIA Advisor Council and a member of the National Association of Active Investment Managers and the Financial Planning Association. Weber co-authored the book, “Dear Investor, What the HELL are You Doing?: Smart and Easy Ways to Fix the Mistakes You Make With Your Money,” and has maintained his role as the publisher of the newsletter “Weber’s Fund Advisor” for 10 years. To learn more about Weber, visit www.WeberAsset.com.